REMINDER Check in on the COLLABORATE mobile app Master Data Governance: Implementing a Framework for Application Harmonization Prepared by: Eric Wagner Data Integration Practice Leader CheckPoint Consulting Session ID #: 14044

Presentation Agenda ■Introduction and Presentation Overview ■Components of Master Data Governance ■Implementing a Governance Framework ■Industry Trends ■Wrap up, Questions 2

Eric Wagner ■CheckPoint Consulting, Data Integration Practice Leader ▪DRM, ODI, FDMEE ■Oracle Consulting, Solution Architect (2007 – 2008) ▪DIM, ODI, DRM ■Hyperion Consulting (2001 – 2007) ▪HAL ■SUNY Buffalo ■USMC 3

Presentation Overview This is a subtitle or bulleted list

What is Master Data? 5 ■Transaction Data ▪Journal Line ▪Level 0 export from Essbase ■Metadata ▪Relational Example — Data Type for account description is varchar2(255) ▪Essbase Example — Alias maximum 80 characters ■Master Data ▪Account value is and parent is Sales ▪Hierarchies: Accounts, Geographies, Company, etc. Data TypeCompanyGeographyAccountDateAmount Transaction CheckPointMI /01/ Meta Text 50 Chars Text 10 Chars Integer 5 digits Date/Time MM/DD/YYYY Double 4 decimals Master CheckPoint –DRM –HFM –PLN –ESS All Geographies –North America Central MI East NY Accounts –Revenue SalesSales Period –FY Q1 –Jan –Feb –Mar Year –2010 –2011 –2012 –-2013

Typical Business Landscape (Generic) 6

Business Example 1 (Software Company) 7

Business Example 2 (Hotel Chain) 8

Business Example 3 (Industrial Conglomerate) 9

Life without governance 10 ■Multiple touch points and silo processes result in lack of data integrity across the enterprise ▪Silos create inconsistencies ■Absence of clear ownership, missing vision & strategy ▪Ownership spread out across business function and not always aligned with business strategy ■Lack of standards, policies and procedures ▪Different or inconsistent naming conventions ▪Policies and procedures different by function ■No clear decision makers for future direction ▪What happens during an acquisition? ▪What happens when business direction changes?

Components of Master Data Governance This is a subtitle or bulleted list

What is Master Data Governance? (Macro Level) 12 ■The process of enforcing data integrity across the enterprise by: ▪Establishing a governing body that is responsible for the following: — Developing standards, policies and procedures — Provide guidance and overall vision — Makes decisions that impact future direction

What is Master Data Governance? (Micro Level) 13 ■Identify data stewards who perform the following functions: ▪Enforce standards, policies and procedures: — Data Stewards have an intimate knowledge of enterprise data, critical that they can recognize incorrect or bad data, based on specific definitions — Identify and resolve data quality issues — Approve and control updates to subscribing systems

People, Process and Technology 14 ■People ▪Focus on identification of ownership, and data stewards ■Process ▪Focus on identifying standards, policies, and procedures around change management ■Technology ▪Focus is on ensuring the technology provides the solution, to the needs of the people and processes People Process Technology

Scope of Data Governance - People 15 Who’s the Owner? Assign roles and responsibilities to people in the organization Data Owner Data Steward Data Manager What do they Own? Identify master data elements that we want to govern Data definitions Data mappings Naming conventions Hierarchy decisions When do they get involved? Create policies and procedures to engage the appropriate people at the relevant time

Scope of Data Governance – Process & Technology 16 Which processes do we need? Identify the processes that need to be formulated to support data governance What are the requirements for workflow? Identify the criteria required to facilitate effective workflow Which system should we use for managing data & workflow? Identify the appropriate system to execute the workflow

People & Process 17 Data User Complete request form with required information Submit request to Data Steward for approval Data Steward Evaluate request for alignment to standards Send approved request to Data Manager for deployment Data Manager Execute the deployment to production environment Inform the Data User the request has been completed

Common Data Governance Processes 18 ■Master Data Definition/Setup ■Aligning Policies, Requirements, and Controls ■Establishing Decision Rights ■Defining Data Retention Policies ■Resolving Issues/Escalation Path ■Specifying Data Quality Requirements ■Communications and Program Reporting ■Measuring and Reporting Value

Implementing a Governance Framework This is a subtitle or bulleted list

Data Governance Goals 20 ■Achieve Clarity ■ Reporting, operational ■Ensure Value ■ In what you report, in your systems ■Enable Better Decision Making ■Maintain Scope & Focus ■Establish Accountability ■Reduce Operational Friction ■Build a Standard & Repeatable Process ■Define & Measure Success

Ownership & Sponsorship 21 ■Establish and define principles of success ▪Establish what it means to have governance across business units ▪Phased Approach — What can you realistically achieve by when? — Identify milestones — Identify measurement for success ■Sponsorship - need to ensure that business units are aligned ▪Must ensure that competing objectives are minimized and that the big picture of enterprise wide governance is not lost

Implementation Elements to Define & Measure 22 ■Overall Strategy ▪Policies, Standards, Business Rules ▪Data Quality ■Security ▪Compliance Requirements ▪Privacy — What limitations are there to managing information? — What can/cannot be shared? ■Architecture ▪Integration & Applications ■Management Alignment ▪Decision Rights ▪Accountability & Ownership ▪Control Mechanisms

Evolution of Governance 23 CharacteristicsScatteredCentralizedGoverned People No Owners, Part-Time/ Informal Stewards, or Committee. Some degree of organization exists, but still fragmented and disconnected. All levels of governance identified (Responsible, Accountable, Contributing, Informed), as well as having clear and comprehensive policies and procedures formed. Process No clear end-to-end processes defined, or not fully functioning. Some processes established, multiple complex integrations, heavy amounts of ETL required. A streamlined process allows users to minimize data entry, allows for quick approvals, pushes metadata to downstream systems with minimal, standard integrations (EBS, EPM). Technology No centralized solution, no approvals, or integration with downstream systems. A centralized solution, some visibility to changes and approvals. Unified, controlled environment for all master data changes. Pre – GovernancePost – Governance

Identify & Outline Roles in the Organization 24 ■Data Steward ▪Coordinates master data updates with end users, data owners, key stakeholders and system owners ■Data Owners ▪For each segment there are one or more individuals that perform a preliminary review and a preliminary approval — Examples include: Director of Corporate Accounting Director of Finance Director of Management Accounting Director of Tax ■Data Stakeholders ▪Final Approver – A single Individual from each department ■Other: Data Managers, Custodians and Users Functional role players from both IT & business

Data Governance Council 25 Contributing/Informed Manage processes set forth by Data Stewards Provide functional and technical resources to make changes in master data change management system Manage master data changes to determine accuracy, completeness, and structure Participate, inform, and improve processes as they evolve by providing status of issues and challenges encountered in during workflow processes. Responsible/Contributing Establish policies for proper entry, synchronization, and maintenance of data across all relevant enterprise applications Centralize control, maintenance, and distribution of data in the system of record Provide clear, concise communication of change requirements Responsible & Accountable Define Requirements for financial master data Establish standards and provide direction Facilitate common view of measures and business segments from corporate down to the business units Contributing/ Informed Communicate business needs and changes to master data Identify key areas for change, based on unique business needs. Influence and provided essential insight with data stewards to establish data stewardship and control policies Rely on financial reporting outputs and metrics to serve business needs. Technology Data Governance Council Data Managers & Users Data Stewards Data Stakeholders Data Owners

Policies & Procedures 26 Formulate policies and procedures to enforce data standards and governance procedures. ■Master Data Setup Procedures ▪Determine the information required to create master data elements for each target system, frequency of deploying changes ■Master Data Definitions ▪Define standard naming conventions for master data elements, create dictionary of master data elements and terms ■Validation Rules ▪Implement checks and balances to ensure the integrity of nodes, hierarchies, and properties ■Master Data Retention ▪Determine retention time frame, archival rules, means of storage, access methods

Industry Trends This is a subtitle or bulleted list

Master Data Governance Trends 28 ■Shift towards implementing partial and full scale governance models that include: ▪Master Data Management Tools: Oracle DRM, Customer Hub, Product Hub, etc. ▪Fully integrated workflow applications — Robust SOA solutions — Out of the box solutions (DRG for DRM) ▪Process Teams: Governance councils, new hires specific for governance positions ▪Global implementations for large companies

Client Example 1 – Partial Governance 29

Client Example 2 – Partial Governance 30

Client Example 3 – Full Governance 31

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